Counterfeiting Job Losses 'Extremely Disturbing'

An international trade body says a new report on job losses due to counterfeiting is “extremely disturbing” and urges a “redoubling” of global authentication strategies.

The International Hologram Manufacturers Association (IHMA) was commenting on a report published by the Organization for Economic Co-operation and Development (OECD).

“Illicit Trade: Fueling Terror Financing and Organized Crime” predicts that global job losses due to counterfeit and piracy will exceed five million by 2022 (5.4m) - an increase of 110% when compared to 2013 figures (upwards of 2.6m).

In addition, it is estimated that the total economic and social costs globally due to counterfeiting and piracy worldwide, which stood at US$737-$898 billion in 2013, is expected to rise to US$1.54-$1.87 trillion by 2022. IHMA says the message is clear: counterfeiting is a global phenomenon that shows no sign of abatement – and more needs to be done.

Manoj Kochar, chair of IHMA, says it’s incumbent upon all those in the fight against counterfeiting to act decisively to stem the impact and secure industry jobs. “This report underlines the role technologies such as holograms can play in this battle,” he says. “They remain paramount weapons in tackling counterfeiting and securing authentication in global supply chains.

“It’s again a sobering reminder that the war on counterfeiting remains far from won, heralding a wake-up call for those desperate to protect brands and profits around the world. Efforts need to be redoubled - and quickly - to tackle the problem, and this might include increased integration of holograms as part of brand protection strategies and even more investment in industry talent and skilled experience,” added Kochar.

Increasing adoption of holography reinforces the technology’s position as a pre-eminent security feature in the global anti-counterfeiting fight. The use of well-designed and properly deployed authentication solutions, as advocated in ISO’s 12931 standard, on authentication solutions, enables examiners to verify the authenticity of a legitimate product, differentiating it from the counterfeits in the marketplace.

Even those that carry a ‘fake’ authentication feature can be distinguished from the genuine item if that item carries a carefully thought-out authentication solution.